It has been generally noticed that Drawing and disbursing officers (DDO) /Employers are not entertaining the deduction claim of employee regarding payment of Tuition fees for full time education of their children as a whole . They are allowing only the the fees which has been shown as with title "Tuition fees " in fees receipt issued by educational institutes .
Admission fees , Computer fee , Science Class fees ,Practical fees ,exam fees etc are not being generally allowed. In most of the cases even after employees raises the query to DDO that why he has dis qualified the of other type of fees for the purpose of section 80C?, the queries are not being properly addressed . Moreover in few cases DDO raised a cross question where it is written that all type of fees are allowed ?.
So in this post we will try to resolve this issue .Firstly relevant provision of section 80C has been reproduced here under.Section 80C(2) clause (xvii)
Any sums paid or deposited in the previous year by the assessee(xvii) As tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,
- (a) to any university, college, school or other educational institution situated within India;
- (b) for the purpose of full-time education of any of the persons specified in sub-section (4);
Further clause 80(4)(C) reproduced here under
(c) for the purposes of clause (xvii) of that sub-section, in the case of an individual, any two children of such individual.
School ,colleges are generally charged various type of fees from student like admission fees , practical fees , exam fees , computer class fees, building fund and tuition fees . The tuition fees word used by School/ colleges and word used in section 80C have different meaning .
Tuition fees used in section 80C have broader meaning and it includes all type of fees payment made to school /colleges etc except following two type of payment or payment of similar nature as suggested below
- Development fees
The example of above are Building Fund,development fees etc.
so all other type of fees are allowed and eligible under section 80C and should also be allowed by DDO's. This issue has been recently clarified through circular 8/2013 dated 10.10.2013 (How to Calculate TDS on salary Income) .Relevant part of circualar 8/2013 has been reproduced here under.
Tuition fees, whether at the time of admission or thereafter, paid to any university, college, school or other educational institution situated in India, for the purpose of full-time education of any two children of the employee.Full-time education includes any educational course offered by any university, college , school or other educational institution to a student who is enrolled full-time for the said course.
It is also clarified that full-time education includes play-school activities, pre nursery and nursery classes.It is clarified that the amount allowable as tuition fees shall include any payment of fee to any university, college, school or other educational institution in India except the amount representing payment in the nature of development fees or donation or capitation fees or payment of similar nature.
In the above circular it has been clarified that "tuition fees shall include any payment of fees " "except the amount representing payment in the nature of development fees or donation or capitation fees or payment of similar nature. "
So all type of fees are allowed under section 80C not only tuition fees as generally understood in common parlance.So if you have following type of fees(examples) in you school /college fees receipt then ask your DDO to allow the deduction under section 80C
- Admission fees
- Exam fees
- Computer class fees
- practical fees
- Smart class fees
Further CBDT also clarified that full-time education includes play-school activities, pre nursery and nursery classes.
From the above we can summarise the provisions related to deduction of tuition fees payment under section 80C as under.
- Tuition fees deduction is allowed under section 80C of the income tax act.
- The overall limit of 1,00,000 is applicable of section 80C ,80CCD(2) ,80CCC for fy 2013-14
- The tuition fees under section 80C has broader meaning then generally prevails in society as explained above
- However ,Tuition fees does not include the amount representing payment in the nature of development fees or donation or capitation fees or payment of similar nature
- Tuition fees deduction allowed for "any two child" of individual.Younger/elder no concept.
- If a couple has four children then both can claim fees for any two children each.
- Even fees of one child can be claimed partly by Husband & wife according to amount paid by each of them .However for the sake of practicability they should arrange separate receipts for their own parts .
- Tuition fees is allowed only to the individual and not allowed to HUF.
- Tuition fees paid for education of assessee himself is not allowed.
- Tuition fees can be claimed for children's education even if child is not depended on person.
- Tuition fees can be claimed for children's education even if child is Major.
- Tuition fees is allowed on payment basis only .so if you have paid fees for fy 2013-14 in March 2013 then it is not allowed in fy 2013-14.
- Tuition fees paid in advance is to be allowed in the year of payment.
- Tuition fees for play school ,pre nursery ,nursery classed also allowed
- Educational institute must be in situated in India ,so fees paid abroad not allowed.
- The eduction must time "Full time education " , part time courses not allowed .
- In our opinion Transport fees ,Hostel fees , Mess charges etc which are not directly associated with education are not allowed under 80C.